Georgia: 2025 Article IV Consultation-Press Release; and Staff Report

Despite heightened domestic and geopolitical uncertainty, Georgia’s economy remains remarkably resilient, with robust growth, near-target inflation, and strong fiscal and financial sector buffers. Foreign exchange reserves have recently risen but remain below prudent levels. Potential growth is limited by high structural unemployment, low educational attainment, infrastructure bottlenecks, and low agricultural productivity, and challenges persist due to high income inequality, outward migration, and informality. To sustain strong growth and make it more inclusive and job-rich, policies should address long-standing issues and bolster the capacity to absorb future shocks.